The Asian Development Bank has approved three projects worth a combined $275 million to expand access to finance, improve rural connectivity and boost low-carbon electricity supply in Papua New Guinea.
The financing package includes support for financial sector reforms, clean energy development and road infrastructure aimed at strengthening economic activity and access to essential services across the country.
“ADB is committed to investing in essential infrastructure, creating a more enabling environment for private sector development, and assisting the Government of PNG to implement transformative power sector reforms that improve lives and livelihoods,” said ADB Officer-in-Charge for Papua New Guinea Soon Chan Hong.
A $100 million policy-based loan will fund the first subprogramme of the Improving Financial Access Programme, which seeks to strengthen the regulatory and institutional framework for domestic and international financial services. These include payments, remittances, credit and capital markets. The programme is also intended to support households and businesses in generating employment and trade opportunities. A second subprogramme will continue the reform process and help sustain improved access to finance nationwide.
Another $100 million loan, alongside a $10 million grant from the Japan Fund for the Joint Crediting Mechanism, will finance the Sustainable Energy Sector Development Programme. Implemented through two subprogrammes, the initiative will support the government in improving the adequacy of PNG’s low-carbon electricity supply.
The programme will also assist in establishing an enabling policy framework to restore the sustainability of the power sector, revitalise PNG Power Limited’s operational performance, and increase private sector participation in delivering clean, affordable and reliable electricity.
In addition, a $65 million loan will support the Transport Project Readiness Facility, which will focus on upgrading and rehabilitating subnational roads across the Southern, Highlands, Momase and New Guinea Islands regions. The roads form part of key economic corridors and align with government priorities under the Medium Term Development Plan IV (2023–2027) and the National Road Network Strategy (2018–2037).
The transport project aims to improve connectivity for rural communities, particularly those producing coffee, copra, cocoa, tea, vanilla and other agricultural commodities, linking them more effectively to markets and essential services such as health and education.
ADB is a multilateral development bank supporting inclusive, resilient and sustainable growth across Asia and the Pacific. Founded in 1966, it is owned by 69 members, including 50 from the region, and works with governments and partners to deliver quality infrastructure and development solutions.
